Police busted an illegal bitcoin mining operation out of an industrial estate in Bradford, England.
According to a report by CoinGeek, "high-powered computer rigs, described as a 'bitcoin factory,' were being run by an unlawfully diverted electricity supply."
What is a bitcoin factory?
Bitcoin factories are essentially massive computer setups that enable miners to make transactions on a blockchain. However, to carry out these trades and run these computer rigs requires a ton of energy.
It's estimated that each year bitcoin consumes 127 terawatt-hours, according to a report by RMI. To put this number in perspective, that's a higher energy consumption than some countries, including Norway.
That usage not only has a significant price tag but also has a massive carbon footprint. In the U.S. alone, "cryptocurrency activity is estimated to emit from 25 to 50 million tons of carbon dioxide each year, on par with the annual emissions from diesel fuel used by US railroads," per RMI.
In the case of the Bradford estate bust, the situation was especially concerning since the electricity used to supply the bitcoin operation was illegally siphoned.
Why are illegal Bitcoin factories concerning?
Illegal bitcoin factories underscore the problem of lax mining regulations.
"In Bradford, the unauthorized diversion of electricity likely strained local resources, raising concerns about fairness and sustainability at a time when energy costs are a pressing issue for residents," explained CoinGeek.
Along with the ethical issues of illegal mining, bitcoin factories also raise numerous environmental concerns because of their massive energy consumption. What's worse, the energy used to run bitcoin factories is largely sourced from dirty fuels, which exacerbate the current climate crisis.
"A 2025 Harvard study found that U.S. BTC mining operations consume significant electricity, exposing millions to air pollution," wrote CoinGeek.
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Definitely 👍 How can crypto be brought under control?
As cryptocurrency activities continue to gain traction, it's imperative for countries to establish clear regulations in an effort to prevent energy theft.
The United Kingdom is starting to revise its mining regulations. According to CoinGeek, Chancellor of the Exchequer Rachel Reeves made an announcement in April about bringing crypto under compulsory regulation.
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